Contura Energy, Inc. (NYSE: CTRA), Time To Buy?
If you are in the money making game probably you have one question in your mind:
How can I pick the next stock to invest in or to trade with?
Honestly, it`s not easy, but luckily you have multiple chooses in front of you.
Firstly, and this is a harder way, you can spend days of researching through thousands of publicly traded companies and expert advises and opinions.
However, there is an easier way to. For instance, you can look at the stocks that smart money investors are collectively bullish on. The idea is next:
Where the smart money goes, profits are flows.
Smart money, AKA hedge funds, and other institutional investors and professional traders usually invest large amounts of money and time, and they have to conduct due diligence while choosing their next stock to invest in, and trade with.
The truth is that they don't always get it right, but, on average, their picks historically generated stronger returns from 90% of retail, sessional traders. Especially after adjusting for known risk factors.
Speaking about hedge funds guys, let’s take a look at their recent activity with Contura Energy Inc. (NYSE: CTRA)
Let us be clear, CTRA is not among the most popular stocks, but it was in 22 hedge funds portfolios at the end of June.
A total of 22 of the hedge funds are bullish on this stock. At the same time there is a change of -31% from March.
Since CTRA has experienced a decline in interest from hedge fund managers, logic holds that there is a sect of fund managers that decided to sell off their entire stakes last quarter.
Still, the largest shareholder of CTRA, with a stake worth $118.5 million reported as of the end of March, is Whitebox Advisors. It is worth to mention that CTRA stock returned -46.1% during the third quarter and underperformed the market.
That is right, CTRA is deeply oversold at the moment.
Note this- At The Moment- because the price can still be in the red for some time, but rebound are coming.
The oversold levels are among the best ones to jump in and potentially to make solid returns. Same levels have the best Risk/Reword ratio, and as you know higher risk is to buy something what is already at the pick and overbought, comparing with buying at oversold levels such as this one.
From Technical Analysis point of view the price is near 3Y low.
The absolute low is at 16.59 level. The RSI, on weekly chart, with his current levels, between 20 and 30, suggesting that rebound can occur. At the same time this is a signal that the price is oversold and in a down trend. According to technical analysis the most reliable buy signal is when the RSI cross over 30 levels. Current value is 27.
On a daily chart RSI is above 40 level, and the support level at 22.58. Current price is 23.69 and potentially can test support level in near time. It is crucial to monitor this level and the RSI movement in order to find the best possible entrance.
Potential target can be found at 32.45 level.
According to analysts gathered on CNN money expected up movement is up to +52% at 36 level.
Example of trading plan can be with S/L at 22.50 (-5%) and T/P at 32.40 (+26%).
If you are in the money making game probably you have one question in your mind:
How can I pick the next stock to invest in or to trade with?
Honestly, it`s not easy, but luckily you have multiple chooses in front of you.
Firstly, and this is a harder way, you can spend days of researching through thousands of publicly traded companies and expert advises and opinions.
However, there is an easier way to. For instance, you can look at the stocks that smart money investors are collectively bullish on. The idea is next:
Where the smart money goes, profits are flows.
Smart money, AKA hedge funds, and other institutional investors and professional traders usually invest large amounts of money and time, and they have to conduct due diligence while choosing their next stock to invest in, and trade with.
The truth is that they don't always get it right, but, on average, their picks historically generated stronger returns from 90% of retail, sessional traders. Especially after adjusting for known risk factors.
Speaking about hedge funds guys, let’s take a look at their recent activity with Contura Energy Inc. (NYSE: CTRA)
Let us be clear, CTRA is not among the most popular stocks, but it was in 22 hedge funds portfolios at the end of June.
A total of 22 of the hedge funds are bullish on this stock. At the same time there is a change of -31% from March.
Since CTRA has experienced a decline in interest from hedge fund managers, logic holds that there is a sect of fund managers that decided to sell off their entire stakes last quarter.
Still, the largest shareholder of CTRA, with a stake worth $118.5 million reported as of the end of March, is Whitebox Advisors. It is worth to mention that CTRA stock returned -46.1% during the third quarter and underperformed the market.
That is right, CTRA is deeply oversold at the moment.
Note this- At The Moment- because the price can still be in the red for some time, but rebound are coming.
The oversold levels are among the best ones to jump in and potentially to make solid returns. Same levels have the best Risk/Reword ratio, and as you know higher risk is to buy something what is already at the pick and overbought, comparing with buying at oversold levels such as this one.
From Technical Analysis point of view the price is near 3Y low.
The absolute low is at 16.59 level. The RSI, on weekly chart, with his current levels, between 20 and 30, suggesting that rebound can occur. At the same time this is a signal that the price is oversold and in a down trend. According to technical analysis the most reliable buy signal is when the RSI cross over 30 levels. Current value is 27.
On a daily chart RSI is above 40 level, and the support level at 22.58. Current price is 23.69 and potentially can test support level in near time. It is crucial to monitor this level and the RSI movement in order to find the best possible entrance.
Potential target can be found at 32.45 level.
According to analysts gathered on CNN money expected up movement is up to +52% at 36 level.
Example of trading plan can be with S/L at 22.50 (-5%) and T/P at 32.40 (+26%).